"Government Announces Investment of Rs 12,900 Crore under PLI Scheme for Specialty Steel"

As per an official statement released on Wednesday, approximately Rs. 12,900 crore has been invested in the domestic steel sector under the Production-Linked Incentive (PLI) scheme for specialty steel. The Ministry of Steel highlighted that in March 2023, 57 memoranda of understanding (MoUs) were signed, aiming to generate investments totaling around Rs. 29,500 crore by FY28.

Under the scheme's objectives, the addition of 25 million tonnes (MT) capacity for producing specialty steel grades is anticipated, with a target of generating around 17,000 employment opportunities, the Ministry stated.

Updating on the scheme's progress, the Ministry noted that selected companies have already invested about Rs. 12,900 crore by December 2023, against an investment commitment of Rs 21,000 crore up to the current financial year. An additional investment of Rs 3,000 crore is expected from these companies during FY24.

Five units established under the PLI scheme have commenced production, with nine more units anticipated to begin production in the current quarter.

Looking ahead, the Ministry envisions an investment of Rs. 10,000 crore in FY25. However, it acknowledged that investments in the steel sector have a lengthy gestation period and are subject to various factors, including procurement of equipment, some of which are sourced from abroad.

Delays in projects have been attributed to factors such as supply chain disruptions due to geopolitical issues, unforeseen events, natural disasters, and changes in market dynamics.

To address challenges faced by participating companies, the Ministry, along with relevant government departments, has been actively engaging with PLI beneficiaries. Efforts include expediting project clearances, issuing standard operating procedures for Indian visas for experts, and continuous stakeholder engagement to address concerns.

These proactive measures aim to facilitate companies in meeting their commitments and ensure the smooth progress of projects under the PLI scheme.

ET